Smart Contracts have displayed tremendous usability in Decentralized Finance (DeFi) in assisting DeFi-based dApps functioning. Smart Contracts have limitless potential if exploited effectively, followed by the support of the blockchain ecosystem, which would lead to widespread adoption by enterprises.
Here in this article, we will discuss how smart contract can benefit enterprises and transform various sectors if deployed correctly.
What is a Smart Contract?
Smart Contracts are codes that are written a compiled into programs containing certain pre-defined rules. When a certain set of conditions mentioned in it are fulfilled, the smart contract gets executed for the purpose it is meant for. Generally, these smart contracts are meant for activities like buying, selling, initiating a process, or even connecting a different set of parties to strike a deal.
Smart contracts are employed to eliminate the third-party arbitrator in cases where checks are mandatory, like funds transfers, so that issues like double spending and fraud could be curtailed while minimizing costs.
How can enterprises benefit from Smart Contracts?
One of the biggest benefits smart contracts offer is that they automate the processes requiring human intervention. The mundane works like checking and verifying through automation are much quicker to get resolved while being cost-efficient. Nevertheless, the manpower used to slog over mundane work can be utilized elsewhere for more productive work while maintaining a better work-life balance for employees.
Use cases of Smart Contracts in enterprise solutions.
Here we will be mentioning the use cases of smart contracts for which they can be adopted by various industries. From simple automation to complex transactions, smart contracts can work wonders for enterprises.
Governance and voting systems
Smart Contracts, in collaboration with blockchain, can work as an excellent medium in facilitating electronic voting so that fraud in voting can be rooted out, as reported by blockchain experts. A Smart Contract-based voting mechanism ensures that only one vote can be cast by a person while enhancing the voting experience of people so that the voting percentage is increased substantially.
Anti-counterfeiting systems
Counterfeiting of products has become rampant due to the lack of an effective anti-counterfeiting mechanism, and smart Contract has the solution for it. You might have already heard about blockchain-based supply chains in collaboration with smart contracts to check products’ integrity and trace their origin. Similarly, smart contracts in the art, music and entertainment industries can confirm authenticity and curb piracy. Digital token-based rights get transferred to the buyer whenever a piece of art is resold to ensure its genuineness.
Healthcare records
Blockchain-based medical records of patients can be made available to healthcare providers, and smart contracts will ensure that such records are shared with only the concerned person. There have been instances of patients’ medical records getting shared with various pharmaceutical companies that later use such information to upsell their products. Smart Contracts will put a curb on such practices and let healthcare records accessible anywhere and anytime but only to those which patients authorizes.
Banking and asset management
Smart Contract-enabled banking systems powered by blockchain technology can effectively stop fraudsters from siphoning off money from bank accounts. Smart Contract follows a special set of prerequisite conditions to initiate a transaction, and blockchain being decentralized ensures that information is copied to nodes to that in case of any such fraudulent attempt, the bank gets notified.
Conclusion
Smart Contracts backed by blockchains will certainly lead to large-scale adoption of advanced smart contracts solutions. Certain technological advancements are going on to include smart contracts over various platforms by providing them more resources, as said by a senior Smart Contract developer at Rejolut. A Smart Contract that is well written and crafted can work for several years over the blockchain as those platforms over which smart contracts are deployed are getting advanced for being future-ready.
